Community input sought on domestic building reform options

The Victorian Coalition Government today released a far-reaching consultation paper seeking public input on options to reform the domestic building consumer protection system.

Minister for Finance Robert Clark, in conjunction with the Minister for Planning and the Minister for Consumer Affairs, announced that the Government is seeking feedback from consumers, builders and other interested parties on both the current system and reform options.

The paper describes and examines the current framework of general consumer protection laws, builder registration systems, building-specific regulations, dispute resolution and limited mandatory insurance, and sets out a range of possible reform options.

Areas listed for possible reform include:

early dispute resolution
the information available to consumers, builders, regulators and insurers
insurance arrangements
legal remedies, inspections and disciplinary actions.
The paper also presents and discusses a wide variety of possible insurance models covering:

mandatory last resort insurance (the current Victorian scheme)
mandatory first resort insurance
voluntary insurance
professional indemnity insurance attached to builders rather than projects.
“While most domestic building projects in Victoria are completed well, there have been far too many cases where the system put in place by the previous government has failed to properly protect consumers against poor workmanship and shonky operators,” Mr Clark said.

“The domestic building construction industry contributes significantly to the Victorian economy and comprises around 6.5 percent of Victoria’s gross state product.

“It is important that consumer protection is as practical, effective, timely and affordable as possible, and that honest and capable builders know their reputation and livelihood will not be put at risk by the failings of a minority,” Mr Clark said.

The consultation and feedback on the discussion paper will be a key input into the Government’s decisions on reform options.

The consultation paper and further information on the submission process are available at www.dtf.vic.gov.au. Submissions will be open until 29 June 2012.